China’s fresh curbs on overseas payments barred investors from sending money offshore, but they aren’t really short on cash.
• In a statement from SAFE on Dec. 31, Chinese buyers of foreign exchange must sign a pledge not to use their $50K quotas for offshore property investment.
• Violators will be on gov’t watch list, denied access to foreign currency for 3 years & subjected to money-laundering probe.
• While the regulator has long banned the use of foreign currency for real estate, its call for additional documentation is a signal that the gov’t is serious about cracking down.
• China’s escalating clampdown on capital outflows is sending shudders through property markets around the world.
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